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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM67587
Volume:
10 |
9 |
Sep 2026
Pages:
1--
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Faculty of Business Administration and Commerce
Mandsaur University
The Unified Payments Interface (UPI) has evolved from a bank-account-based mobile payment mechanism into a foundational component of India's digital public infrastructure. This study empirically examines the growth trajectory of UPI, with particular emphasis on the changing composition of Person-to-Person (P2P) and Person-to-Merchant (P2M) transactions and the role of leading UPI applications in shaping the digital payments ecosystem. The study covers April 2020 to 31 August 2026 and relies primarily on secondary data published by the National Payments Corporation of India (NPCI), supplemented by Reserve Bank of India (RBI), Government of India, and selected peer-reviewed and institutional sources. Annual UPI transaction volume increased from approximately 2,233 crore transactions in FY2020-21 to 24,161.69 crore in FY2025-26, while transaction value increased from approximately ₹41.03 lakh crore to ₹314.23 lakh crore. Estimated CAGR was approximately 61.0% in volume and 50.3% in value. P2M transactions accounted for approximately 63% of UPI transaction volume by FY2025-26, whereas P2P transactions continued to dominate transaction value at approximately 71%. In August 2026, UPI processed 24.51 billion transactions worth approximately ₹29.82 lakh crore. PhonePe, Google Pay and Paytm were the three largest UPI applications, accounting collectively for approximately 85.93% of transaction volume and 88.47% of transaction value. The study interprets UPI's economic contribution through payment efficiency, merchant digitisation, financial inclusion and digital transaction intensity, while avoiding the unsupported assumption that transaction value equals GDP contribution.
KEYWORDS
UPI has undergone a profound transformation during the study period. Its importance increasingly lies in transaction frequency, merchant digitisation and integration of everyday commerce into real-time digital payment infrastructure, while P2P remains important for higher-value transfers. UPI has therefore evolved from a digital payment product into a critical layer of India's digital economic infrastructure.
Vikram, A. (2025). A critical review of Unified Payment Interface (UPI) usage and its impact on retail payment sector and buying power of consumer. International Journal of Scientific Research in Engineering and Management, 9 (9), 1-7. Gopika, C. G., Biju, A. V., Sasidharan, A., & Sarpong-Kumankoma, E. (2026). Government-led design and growth of India's UPI ecosystem: A time series analysis of associated factors. Journal of Science and Technology Policy Management. Gupta, R., Anand, A., & Gupta, T. (2025). Are digital payments driven by wealth inequality? Evidence from analysis of the Unified Payments Interface (UPI) adoption in India. Economic Analysis and Policy, 87, 1130–1141. Haque, M. I., Azeez, A. N. P., & Akhtar, S. M. J. (2025). UPI and financial inclusion in rural India: A case study. Digital Economics and Sustainable Finance. Kiran, K. P., & Sailaja, V. N. (2025). Assessing Unified Payments Interface (UPI) adoption and usage through the interplay of UTAUT factors. Humanities and Social Sciences Communications, 12, 1060. Ministry of Finance, Government of India. (2026). Nearly 55.49 crore users onboarded on UPI as in June 2026. Press Information Bureau. Ministry of Finance, Government of India. (2026). UPI completes 10 years of digital payments revolution. Press Information Bureau. Motheram, A., & Buteau, S. (2026). Supply side drivers of digital payment adoption in India. Discover Sustainability, 7, 560. National Payments Corporation of India. (n.d.-a). Unified Payments Interface (UPI) product statistics. NPCI. National Payments Corporation of India. (n.d.-b). UPI ecosystem statistics. NPCI
Publication Date
9/30/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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Conflict of Interest
The authors declare no conflict of interest related to this research work.
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